Angiotech Asks U.S. Court To Sign Off On Restructuring Plan

Canadian drug maker Angiotech Pharmaceuticals Inc. says a "large consortium" of its creditors is backing the reorganization strategy it proposed in its home country, and it's asking a U.S. bankruptcy judge to sign off on the restructuring plan that it will put before a Canadian court on April 6, Dow Jones Daily Bankruptcy Review reported. In papers filed Friday with the U.S. Bankruptcy Court in Wilmington, Del., Alvarez & Marsal, the court-appointed monitor of the company's Canadian proceeding, said the restructuring has advanced with a "remarkable degree of efficiency" and has a "high probability of success." Angiotech filed for creditor protection under Chapter 15 of the Bankruptcy Code in January after having sought protection in Canada. Chapter 15 allows companies to protect their assets in the U.S. while restructuring in their home countries. Angiotech has proposed a debt-for-equity swap that would see its subordinated bondholders, owed $250 million, take control of the company. The company has also launched an exchange offer in the U.S. with holders of its $325 million in senior floating-rate notes due in 2013 that would swap out the old notes for new ones. The exchange offer expires on March 31. A number of the floating-rate noteholders initially balked at the proposal, but the company has since won the support of 89% of those creditors after amending the terms of the deal. Angiotech said it will hold a meeting on April 4 to obtain creditor votes on its restructuring plan ahead of the April 6 hearing in Canada. The Delaware bankruptcy court is slated to consider the company's request to sign off on the Canadian plan on April 8. Based in Vancouver, Angiotech produces medical products that reduce the side effects of surgical procedures, improve surgical outcomes, shorten hospital stays or improve and simplify surgical techniques. The company's U.S. subsidiary is based in Seattle.